Need business and finance help to calculate the profitability of the Chester Company account.
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Wizard Corporation has analyzed their customer and order handling data for the past year and has determined the following costs: |
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Order processing cost per order OUR PROCESSOrderPaymentWritingDeliveryWhy Choose Us: Cost-efficiency, Plagiarism free, Money Back Guarantee, On-time Delivery, Total Сonfidentiality, 24/7 Support, 100% originality |
;$7 |
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Additional costs if order must be expedited (rushed) |
;$10.00 |
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Customer technical support calls (per call) |
;$12 |
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Relationship management costs (per customer per year) |
;$1200 |
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In addition to these costs, product costs amount to ; 75% of Sales. |
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In the prior year, Wizard had the following experience with one of its customers, Chester Company: |
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Sales |
;$15,500 |
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Number of orders |
;160 |
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Percent of orders marked rush |
;70% |
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Calls to technical support |
;80 |
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Required: |
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Calculate the profitability of the Chester Company account. |
